Thank you, George [Nield].  Good afternoon.  I am delighted to be here with you today. We’re making so much progress and things are happening so quickly in commercial space, that I think this conference is a good place for us to look ahead for a moment and anticipate what this industry will look like in the next decade and how we can position ourselves for maximum success.

It was only a few short years ago that the idea of private companies delivering payloads to the International Space Station was a novel idea. Could it be done? Could the private sector perform what had always been a government mission?

Well, this industry has showed that yes, private companies can handle this mission, and handle it very well. There have been nine deliveries to the International Space Station in the last three years by two private companies – proving to the naysayers that these types of missions are no longer the exclusive purview of the government.

In the next two years, private industry is working to also deliver NASA crew to the International Space Station, in addition to cargo.  As you know, contracts for these missions were awarded to Space X and to Boeing. Both companies are now finishing development of their vehicles.   

This is another example of public-private partnership.

On the horizon there could be any number of innovations: 

• We could see the launch of thousands of small satellites into lower earth orbit to help extend internet connections around the world. This could also allow students and researchers access to satellites to conduct their own research.
• Down the road, we could see flights from Los Angeles to Sydney in just three hours, thanks to space planes using rocket propulsion to touch the edge of space and then arc back to Earth in a controlled descent. 
• And we are not far away from commercial space tourism.

I won’t say commercial space travel, because no one intends for the public to travel from point A to point B in space, at least in the near future. However, the idea of private companies ferrying paying passengers to the edge of space for a tour is very real. Space flight participants will have the opportunity to experience weightlessness and to see the magnificent curvature of the Earth out of the spaceship’s window.

Astronauts on Apollo 8, the first manned mission to orbit the moon, were the first to see the blue orb of the Earth rise over the lunar landscape. It was Christmas Eve, 1968. The astronauts remarked what a beautiful sight it was to behold. In the words of Command Module Pilot James Lovell, “The vast loneliness is awe-inspiring, and it makes you realize just what you have back there on Earth.”

It’s truly amazing that private citizens may soon have the chance to experience a similarly exceptional view of our planet.  

What has allowed progress and innovation to take place has been the very experimental nature and the very experimental culture of the commercial space industry. Companies have made breakthroughs in composite structures, innovative propulsion systems and remote sensing satellites. They have had the freedom to think creatively and to explore different applications for new technology and to make products more affordable.  

And the market has responded. It was responded with investment of billions of dollars in the promise of commercial space. People are investing in America because the sense of security that surrounds our industry and the regulatory environment that the United States offers, and that’s a good thing.

Consider how the pace of activity has quickened. There were just three commercial launches in the U.S. in 2012. Last year there were 19 launches. And by the end of next year, in 2016, if activity in suborbital space tourism continues apace, we expect that this number could triple. America has seen a resurgence in space related innovation, continuing a proud tradition. 

President Obama’s 2016 budget, released this week, acknowledges this and includes an additional $1.3 million for the FAA’s Office of Commercial Space to support 25 new staff positions to handle licenses, permits, safety inspections, and technical outreach.  We want to keep up with the demand and not present a bottleneck to the innovation that’s been taking place.

All of this progress is very good news. As an industry, commercial space enjoys a unique environment. The FAA promotes commercial space, but does not set standards for the industry in terms of those on board a flight into space. The FAA does, of course, protect the safety of the public not involved in the mission, and has regulations to protect national security and the environment. These are set forth in the licenses and permits we issue for launches. But for those going into space, everyone is informed of the risks and everyone consents to them.

That notwithstanding, the two failed launches last year coming one after another, focused the public’s attention on the commercial space industry. It was an important reminder that risk accompanies all ventures into space, and it was an important reminder that risk is something we all need to manage when making design and operations decisions. But I think how we take responsibility for this risk is the real measure of how we are doing as an industry. We should not take an attitude that “risk happens,” but adopt the attitude that we will need to address and mitigate risk as this industry continues to mature.

I am not here today to suggest that we change the experimental culture of the commercial space industry. Rather, I am here to suggest that industry and government have a responsibility to consider together the appropriate transition to a framework that involves performance based standards. There is a moratorium right now on regulation of occupant safety for commercial space transportation. That is set to expire at the end of this fiscal year, and it could very well be extended.

What I want to suggest is that we need to start a thoughtful discussion across government and across industry about risk. What we don’t want is to have some kind of framework that would be imposed upon us in reaction to something that might happen. We need to start a conversation about the balance between innovation and regulation.

Now, commercial space is a different animal from aviation, and the regulatory picture for this industry could be very different from that of commercial aviation. But it’s not realistic to think that there should not be any standards or any regulation at all, ever. What we need is a plan for how this industry will make the transition, and at what time, and what the future will look like as we integrate more and more launches into our national airspace.

Now, already efforts are underway to create industry standards. The Commercial Space Flight Federation has so far issued one completely voluntary standard to its member companies. They are working now in concert with the American Institute of Aeronautics and Astronautics, as well as SAE International, to start the discussion about what kinds of standards are necessary for commercial space transportation. SAE has more than 100 years of experience in developing standards and AIAA represents the subject matter experts that are in the field. The Commercial Space Transportation Advisory Committee now has a standards working group as well, which can provide a link between government and industry.

Innovation is essential to the commercial space transportation industry. We want new products to come to market thereby fueling the U.S. economy, and we want to continue the America tradition of space exploration. We don’t know yet what future space vehicles will look like. Therefore, I realize that talking about standards at this time could be like standing on the sands of Kitty Hawk and asking the Wright Brothers for best practices on how to build a 787 Dreamliner. How do we know what the standards are when we don’t know what we’re going to be building?

While it’s too early for specifics, I don’t think it’s too early to call for a plan. We need to start to think about how industry and government can work together to create standards that will ensure success for this industry in the future.  A good place to start would be practices for human spaceflight occupant safety. The FAA released recommended practices for this area just last year.

America has had a rich history in space since the 1960s. We were the first to set foot on the moon. We developed the Saturn V rocket – the largest ever at the time – that made the Apollo missions possible. And today, the United States plays a vital role in the research and operations of the International Space Station.  

Now, American companies are continuing these proud traditions and building and launching rockets entirely funded by private investors. They are advancing our leadership in space. There is no one else in the world that is doing that.  Commercial space is an industry that runs on daring and big ideas. It’s exciting and it’s innovative. Let’s continue to work together to take the necessary steps that will help this industry continue to thrive for decades ahead of us.

Thank you.